JLR, Chery finalise luxury cars deal

Rover website.
“Working together on this proposed joint venture is an exciting prospect for both JLR and Chery,” Ralf Speth, JLR chief executive and Yin Tongyao, chairman of Chery Automobile Company Ltd, said.
“Demand for Jaguar and Land Rover vehicles continues to increase significantly in China. We believe that JLR and Chery can jointly realise the potential of these iconic brands in the world’s largest car market.”
The deal comes as a boost for JLR, now owned by India’s Tata Motors, at a time when its sales in Europe remain weak due to the current economic uncertainty.
The joint venture company will set up a research and development facility, a plant to manufacture engines, and it will look after vehicle sales as well.
Tata Motors, which makes the world’s cheapest car, the Nano, bought Jaguar and Land Rover from US Ford Motor Co in 2008 for US$2,3 billion as part of its plans to expand beyond Asia. Tata Motors officials have said there are plans to double its investments in JLR to £1,5 billion a year, starting in the new financial year, to help launch new products and technologies.
In recent years India and China have emerged as key markets for global vehicle makers, as car sales in most developed countries have slumped due to economic turmoil.
Chery, which makes passenger cars, utility vehicles and engines, is one of China’s largest automobile makers, with exports to over 60 countries. — AFP.